AmCham CZ Research: Manufacturing Workforce Trends

Manufacturing companies in the Czech regions are in a tough competition with Prague for talent, and the drop in working age population is putting pressure on the ability to deliver, as well as salaries.

National trends:

Manufacturing, with its predominant emphasis on export, is the industry most aﬀected by the decline in the number of people of working age. Throughout the economy, demand for people has outstripped the number of people, which has caused wages to increase. Export manufacturers do not have the ability to raise their prices to adjust to higher wages.

This is conﬂict that could lead to crisis. Employment growth since 2011 slowed or reversed in 2016 for most occupatonal categories. Growth is strong in professional and technical occupatons.

Wages have increased across all major occupatonal categories. Increases are smaller in highly skilled professions, which is likely a sign of the lack of people to meet the economic demand.

Central Bohemia, Bohemia and Moravia

The attraction of jobs in Prague in other industries seem to be a primary inﬂuence of wages. Central Bohemia– which is inside the Elephant eﬀect (named for the commuter train carrying people to Prague)- has some of the highest wages an largest wage diﬀerentals of any district in the country. In terms of wage calculatons, the manufacturing industry can roughly be divided into Central Bohemia/Prague and everyone else. Otherwise, the diﬀerence in wages ﬂuctuates between districts depending on demand. Zlin and Olomouc ofen lie at the low end of the ﬂuctuaton.

Managers, Professionals and Technicians

Employment in industrial management increased sharply over trends in 2016. Working proprietors accounted for a signifcant proporton of this increase. Central Bohemia and South Moravia have the highest wages and widest range, which likely reﬂect the force of Prague and Brno, respectvely. The growth of professionals in manufacturing has been very high since 2011. This raises questons about capacity. Wage levels are fairly even across the country. Job growth is stronger in Bohemia than Moravia. Job growth for technicians slowed in 2016. Wages are fairly uniform across districts.

Clerical, Crafsmen and Plant Operators

Stock clerk jobs are in decline; industrial clerk jobs are increasing. The stock job losses are greater than the industrial clerk gains. Wage levels vary by approximately CZK 7000 across districts and ranges are fairly uniform across districts. The increase of crafsmen jobs stalled in 2016. This is the result of low supply, not demand. Plzen and South Moravia have seen the highest job growth. Usti, Liberec and Olomouc regions lost jobs. Central Bohemia shed 10% of its crafsmen jobs in 2016. Plant operator jobs have been in decline, but experienced a slight increase in 2016. Central Bohemia had a sharp increase in machine operator jobs. Wage growth across all districts again indicates that demand for workforce substantially exceeds supply.

Contact Katarina Bendikova at kbendikova@amcham.cz to receive full version of the report, including data sets on median wages and employment.